Netbook manufacturers may end up keeping any models based on Intel’s N270 or N280 Atom processors running on Windows XP rather than upgrade to Windows 7. The rationale behind such a move is that due to intense competition in the netbook segment, putting prices up (as would be the case with Windows 7) would put them at a strategic disadvantage.

It is believed that the latest quotes from Microsoft on Windows 7 is around the $45-$55 mark. This compares to the OEM price of Windows XP which is around $25-$30. Although, other rumours have pointed to an XP price as low as $15. The top manufacturers are still negotiating with Microsoft to try and bring the price down.

However, vendors do not see Windows 7 being a big selling point when it comes to netbooks as they believe that most consumers believe Windows XP is good enough for a netbook. At the moment, Windows 7 is only being considered for the next generation of Atom ‘Pineview’ processors including 1.66GHz Atom N450 based devices.

Update: Samsung has said that it “will run Windows XP for as long as we can,” speaking to Laptop Mag. It said that as things stand, it wasn’t convinced of Windows 7 Starter Edition.